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With the majority of youngsters being placed in foster care, a shortage of placements was cited as the main challenge for most local authorities, according to a report published by the Association of Directors of Children's Services.

Earlier this year it was estimated that 7,600 foster carers were urgently needed in England.

Dave Hill, president of the ADCS, said: "This figure is now much greater as we prepare for the arrival of more unaccompanied children and young people in the coming weeks."

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Town halls have seen a jump in the number of unaccompanied asylum-seeking minors

He added: "Finding a safe, suitable placement is the main priority for us but it is getting increasingly difficult due to the ongoing national shortage of foster carers.

Research shows the funding provided by central government is wholly inadequate

Dave Hill

"This crisis is driving up the usage of independent fostering agencies out of necessity and this in turn is driving up costs and draining already stretched council budgets."

According to the report, in March this year councils were supporting 4,689 unaccompanied asylum-seeking children but that number is "significantly larger" now.

Heartbreaking images depict refugee children

Fri, February 24, 2017

Photo report on the growing refugee crisis in Europe of children, some of who are orphans struggling to survive

A young boy cries at a makeshift camp for migrants and refugees at the Greek-Macedonian border near the village of Idomeni

Using council figures, the ADCS calculated that grant-funding from the Home Office only covers on average 50 per cent of the costs of caring for each child

Mr Hill said: "The will to help these vulnerable children is largely strong in local government, and in local communities, but as our research shows the funding provided by central government is wholly inadequate."

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The numbers are set to rise even further following the recent closure of the Jungle camp in Calais

The research shows enhanced funding rates for councils cover the cost of some types of placements but not social work time and translators, he said.

Mr Hill added: "To date, the gap in funding has been filled by individual councils but this is not sustainable.

"We are increasingly concerned that our ability to meet the needs and wishes of these children and young people could be compromised as a result of this."

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ADCS calculated that Home Office funding only covers 50% of the care costs for each child

David Simmonds, of the Local Government Association, said it was "imperative" councils get a long-term funding arrangement from Government.

Earlier this week ministers announced that funding to local authorities to support and care for refugee children will be regularly reviewed, while the number of foster carers and supported lodgings where they can be housed will be stepped up.